Borrowers have easier time acquiring residential financing
Posted on Wednesday, April 9, 2014 at 8:47:48 AM
Since the Great Recession, conditions within the housing market have fluctuated drastically. For a period of time, borrowers interested in residential financing were having a relatively difficult time acquiring mortgages, but thankfully conditions have improved recently.
According to the Mortgage Bankers Association, mortgage credit availability ticked up in March, based on information from the month's Mortgage Credit Availability Index. The MCAI rose to 114.0 in March, compared to February's 113.5. Any increases are indicative of loosening lending standards.
"Consistent with past months, many lenders and investors are providing borrowers seeking higher loan amounts with a broader range of financing options by introducing new jumbo loan programs," said Mike Fratantoni, chief economist at the MBA. "Over the month, some lenders made a complete exit from wholesale lending operations, while other lenders moved to enter that space or expanded operations."
For many borrowers, the increased access to jumbo loans has been good for the real estate segment and the lending environment overall. MarketWatch explained that these large loans could cause big changes in 2014. For example, it could bring with it an increased desire for adjustable-rate mortgages, and it could also help keep mortgage rates relatively low over the next few months.